Life insurance can help you live with peace of mind in case of an emergency. However, if you take out too much life insurance or have too many coverages, insurance premiums will put pressure on your family budget. So what is the right amount of insurance?
Let's think about how to apply for life insurance that is suitable for your family while looking at the amount of insurance premiums paid by age, annual income, and family composition.GIFTS. 20 dollar NOWSIGN UP
Relationship between insurance premiums and household finances
Premiums are basically fixed costs that you will continue to pay for many years. If you increase your fixed costs too much, it will put pressure on your household finances and make your life difficult. Therefore, it is important to keep your premiums as low as possible.
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Also, while you are paying insurance premiums, changes in your living situation may occur, such as a decrease in income due to a job change or recession, or an increase in expenses due to your child going on to higher education. You will also need to think about whether you will put pressure on your household budget when there is a change in your household budget.
We recommend that you keep your premiums as low as you can afford to save.
Average premium amount
In 2021, the average annual premium paid by households enrolled in life insurance (including individual annuity insurance) was 371,000 yen. Converted to about 31,000 yen per month (2021, research by the Life Insurance Culture Center).
What is the average insurance premium amount by age of the householder?
Age of householder | Annual premium paid |
Under 29 | 215,000 yen |
30-34 years old | 262,000 yen |
35-39 years old | 382,000 yen |
40-44 years old | 348,000 yen |
45-49 years old | 375,000 yen |
50-54 years old | 432,000 yen |
55-59 years old | 436,000 yen |
60-64 years old | 384,000 yen |
65-69 years old | 436,000 yen |
70-74 years old | 337,000 yen |
75-79 years old | 314,000 yen |
80-84 years old | 286,000 yen |
85-89 years old | 358,000 yen |
Over 90 | 256,000 yen |
We can see that households with heads of households aged between 55 and 59 and those aged between 65 and 69 pay the most premiums. People in their 50s and 60s, who have relatively high incomes and are more likely to have families, tend to pay more annual premiums, followed by people aged 35 to 49.
As a case of taking out life insurance in your 70s, you can think of using life insurance as a measure against inheritance tax or taking out a grandchild's educational endowment insurance. You may also want to continue with the life insurance policy that you had in the past.
On the other hand, one reason why the annual insurance premiums for households whose heads are 80 to 84 years old and over 90 years old is low is that in many cases 80 to 90 years old is the upper limit of the insurance enrollment age. increase.
What is the average insurance premium by household income?
There is also a difference in the premium payment amount depending on the annual household income. Here are the average insurance premiums calculated by household annual income.
■ Annual insurance premiums by household income (all life insurance)
household income | Annual premium paid for the entire household |
Less than 2 million yen | 205,000 yen |
2 million yen or more and less than 3 million yen | 280,000 yen |
3 million yen or more and less than 4 million yen | 315,000 yen |
4 million yen or more and less than 5 million yen | 306,000 yen |
5 million yen or more and less than 6 million yen | 319,000 yen |
6 million yen or more and less than 7 million yen | 329,000 yen |
7 million yen or more and less than 10 million yen | 434,000 yen |
10 million yen or more | 579,000 yen |
Annual premiums for households with 4 million yen or more and less than 7 million yen are almost the same, ranging from 306,000 yen to 329,000 yen. However, as a whole, there is a tendency for higher household incomes to increase.
Household annual income is 280,000 yen to less than 3 million yen, and 315,000 yen to less than 3 million yen to less than 4 million yen. It is thought that there are a relatively large number of households that find it difficult to deal with such things as savings in the event of an emergency. As a result, life insurance premiums tend to be higher to cover the risk.
On the other hand, for households with an annual income of 7 million yen or more, it seems that there are cases where they join life insurance with various security not only to cover risks, but also for asset management.
How much can I pay for insurance?
If you can afford it, you can buy life insurance to cover all your worries. However, the reality is that this is not the case in many households.
How much insurance can you afford to pay? From the survey results, let's think about the target.
Average amount of premium payable
According to the results of a survey asking how much insurance premiums can be paid annually, the average amount in 2021 is 318,000 yen, the lowest amount in the past 12 years. In addition, among the payable insurance premiums, the highest percentage of responses was less than 120,000 yen per year, as in the previous survey. You can see that the percentage of less than 120,000 yen is increasing year by year.
This amount includes individual annuity insurance, so it is a payable insurance premium that includes life insurance for savings purposes .
How to choose life insurance based on insurance premiums
Life insurance is used to ensure peace of mind. It is putting the cart before the horse if paying insurance premiums puts pressure on the household budget and makes it impossible to live with peace of mind.
So, here are some things to keep in mind when choosing life insurance.
The first thing to consider is the purpose of taking out life insurance.
Life insurance is purchased to ensure the protection you need. Also, some people use insurance to make investments and fund their retirement. After all, the purpose is to secure the necessary security and to create assets, and purchasing insurance is a means to achieve the purpose.
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